14 DAY TRIAL // It’s no news that Samsung’s Galaxy S and Galaxy Note flagship smartphones do not sell as good as they once did. Even though the Galaxy S5 was sold by the million, compared with previous models’ sales, this can be easily considered a flop.
Unfortunately, the South Korean company thought it could cash in on another Galaxy S flagship handset without bringing any new changes in terms of design.
Basically, Samsung’s high-end lineup of smartphones is not as attractive as it was before, but this is only one of the many reasons the handset maker may lose the major player in the smartphone business status soon if it doesn’t change something fast.
But let’s see what Samsung reported recently in regards with its financial status. Well, it looks like Samsung confirmed its operating profit for Q3 2014 will be down to around $4 billion (€3.17 billion).
Since the same company reported a record operating profit of $9.6 billion (€7.61 billion) in Q3 2013, it means that Samsung’s profits dropped by 60% in just one year.
This is the fourth quarter in a row that Samsung reports declining profits, which should sound the alarm among the company’s CEOs who weren’t capable to turn around the revenues on a positive trend.
Samsung inability to innovate seems to have doomed its operational profits, which are still high for a handset maker. The bad news is that the things will only get worse now that Apple has launched not one, but two iPhone smartphones with larger than 4-inch displays.
Chinese OEMs are eating into Samsung's smartphone market in Asia
Statistically speaking, there are few chances for a company with such a declining trend to ever come back. Remember Nokia, Motorola, BlackBerry and HTC, all three had big financial issues and they weren’t able to regain the lost market share.
In fact, Nokia mobile phone business has been acquired by Microsoft, while BlackBerry and HTC are struggling to sell just enough so that they won’t sell to bigger companies like Motorola that was acquired by Google and then Lenovo.
Obviously, Samsung is still far from this scenario, but if the South Korean company doesn’t start to innovate immediately, we believe even the most loyal fans will turn to other brands.
Each day the competition on the smartphones market becomes fiercer and Samsung seems to have lost lots of battles during the last 12 months, so let’s hope it will not lose the war as well.
With companies like Xiaomi, Oppo, Gionee and Lenovo that are eating into Samsung’s market share in China and other Asian countries, there’s little hope for a comeback for the South Korean company.